Shipbuilding budget soars 40% as South Korea commits to industry growth
South Korean government has increased its investment budget by 40% to about $180m in 2025 to enhance its shipbuilding industry, focusing on green shipping, digitalisation and autonomous technology
Initiative aligns with the ‘K-Shipbuilding Super Gap Vision 2040’, which aims to solidify the country’s position as a global leader in the sector
THE South Korean government has announced a Won258.6bn ($178m) investment this year to enhance the competitiveness of its shipbuilding industry, marking a 40% increase from last year’s budget.
The Ministry of Trade, Industry and Energy (MOTIE) said it would allocate Won171.6bn to the green ship sector, Won66.7bn to the digital transformation of the shipbuilding process and Won20.3bn to unmanned autonomous ship technology.
The investment aligns with “K-Shipbuilding Super Gap Vision 2040”, a public-private initiative launched in July 2024. The road map, developed with domestic shipbuilders and industry stakeholders, aims to position South Korea as a global leader in shipbuilding technology with an investment of more than Won2trn.
As part of its strategy in developing technologies, MOTIE announced Won20bn in funding for the first 17 new research and development projects.
They will focus on ammonia-powered ships, electric propulsion vessels, wind-assisted propulsion technology, automation in shipbuilding using robotics and a digital collaboration platform for shipbuilders and subcontractors.
A MOTIE official emphasised the importance of ammonia as a next-generation fuel and said: “Ammonia-powered ships should be intensively promoted as the new growth engine of the next generation, following LNG carriers.”
To support this transition, the government will fund the development of critical equipment, including ammonia fuel injection systems, leak detection and treatment technologies, and emission after-treatment systems.
South Korea is also planning to build the world’s first ammonia bunkering ship.
“We expect the 23,000 cu m ammonia bunkering vessel, equipped with domestic technology, to be built by 2028. The construction will require approximately Won100bn, with the government contributing Won20bn and the remainder funded by private investment,” a MOTIE official told Lloyd’s List:
The government will also support technological advancements for medium and large electric propulsion ships, wind-assisted propulsion systems, and onboard carbon capture and disposal systems.
For the digital transformation of shipbuilding, South Korea will focus on developing a high-speed laser cutting system, creating an autonomous mobile welding robot for interior ship blocks and introducing a continuous welding robotic system for thick iron plates.
Additionally, the government is working on a digital production management and planning system for subcontractors, designed to increase shipyard productivity, enhance safety and modernise shipbuilding processes.
“Going forward, securing super-gap technology is essential to ensure sustainable competitiveness,” said MOTIE.